The monthly payments on the Wolskis' $83,000 mortgage were originally based on a 25-year amortization and an interest rate of 7% compounded semi-annually for a five-year term. After two years, they elected to increase their monthly payments by $50, and at the end of the fourth year they made a $5,000 prepayment.
a) How much have they shortened the amortization period?
b) What was the principal balance at the end of the five-year term?

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The Answer of The monthly payments on the Wolskis' $83,000 mortgage were originally based on a 25-year amortization and an interest rate of 7% compounded semi-annually for a five-year term. After two years, they elected to increase their monthly payments by $50, and at the end of the fourth year they made a $5,000 prepayment.
a) How much have they shortened the amortization period?
b) What was the principal balance at the end of the five-year term?

The Monthly Payments on the Wolskis' $83,000 Mortgage Were Originally